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Singled Out for Salary Reduction - Arizona

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  • Singled Out for Salary Reduction - Arizona

    I'm a salaried employee at a small company. I've worked there almost 4 years. I am a model employee who does top quality work, never takes a sick day, is never late, and is very conscientious.

    This past Wednesday my boss informed me that he was going to reduce my salary by 10,000. He referenced the tough economy. I asked if the pay cuts were company wide. He said no, it was only me. I asked why and he said because I am the highest paid employee. He also cited the fact that over the years I have gotten small raises when some others have not.

    For what its worth, it is my suspicion that my boss resents me because he pays me a good salary.

    I feel like I am being discriminated against and punished unfairly. Is a salary reduction not based on poor performance legal? Is being singled out like this legal?

  • #2
    There is no law prohibiting pay reductions for reasons other than poor performance. There are no laws prohibiting pay reductions at all.

    As long as you were not singled out because of a characteristic protected by law, your employer is legal. He cannot reduce your pay below the higher of state or Federal minimum wage and he cannot reduce it for hours already worked. Beyond that, in the absence of a legally binding contract or CBA that guarantees your pay rate, the law is satisfied.
    The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.


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